Cash Converters FY2024 Unaudited Trading Update

Cash Converters International Limited (ASX: $CCV) has released its unaudited market update for the full year ended 30 June 2024 (FY2024). The company reported a 26% year-on-year increase in revenue to $382.6m, driven by continued momentum from the underlying Australian store operation and the contribution from franchise store acquisitions across Australia, New Zealand, and the United Kingdom. The operating profit is not expected to differ materially from the prior period, in line with the communicated strategy to acquire franchise stores and grow longer-term, lower-cost loan books to offset the profit impact of changes to the Small Loan product. The gross loan book also saw a 6% year-on-year increase to $288.1m, with credit demand remaining strong throughout FY2024.

Cash Converters Managing Director, Sam Budiselik, on FY2024 performance

We are pleased to present an unaudited update on business performance for FY2024, further extending our record of revenue and loan book growth. This was driven by strong trading activity in our Australian business and a growing contribution from our new UK corporate store network, following the successful integration over the period of the franchise network acquisition previously announced. Our business remains well positioned to continue to benefit from a growing international focus on the importance of the circular economy and the repurposing of pre-owned goods, in conjunction with consumers experiencing increased cost of living pressures at a time when mainstream finance continues to become more difficult to access.

Outlook and Growth Drivers

Cash Converters is excited to continue building on the operating momentum across its global business, with a primary focus on acquiring franchise stores and growing personal finance product loan books. The company sees unique growth optionality in established franchise partnerships in other jurisdictions, expanding its business model to reach more customers across Europe, Asia, and Southern Africa. The company anticipates growing customer demand due to increasing cost-of-living pressures impacting consumers and the potential regulatory reform benefiting the company. With a global network of established stores and digital assets at the center of a growing circular economy, Cash Converters sees excellent prospects for continued earnings growth over time. The company's outlook includes underlying credit demand growth, increased regulatory focus on non-regulated credit products, additional value accretive franchise store network acquisition opportunities, successful diversification into new loan books, continued balance sheet strength, and a track record of dividend payments.